30 Oct 2020

Arthritis company Promisia now an aged care sector player

6:47 pm on 30 October 2020

The former medical company Promisia Integrative is now a player in the aged care sector after successfully acquiring three facilities in the North Island and leasing a fourth in the South Island.

Unrecognizable health visitor and a senior woman during home visit. A nurse giving tea to an elderly woman sitting at the table. Close up.

Photo: 123RF

Promisia recently reached a settlement with Medsafe concerning the prosecution of the company for breaches of the Medicines Act, in which nine charges related to its product Arthrem - a dietary supplement.

In May, chairman Stephen Underwood said there was no viable future in producing the arthritis medication anymore and pitched the details of its planned pivot into the aged care sector.

He said the acquisitions represented a significant and exciting change of direction for the company.

"We are very pleased to be bringing these aged care facilities together under Promisia. The aged care

sector presents a number of opportunities, and particularly with our ageing demographics, strong

prospects for growth."

It initially struggled to gain support from banks for the proposal and believed that was reflective of the wider tightening of the credit and lending market due to Covid-19.

It has since secured funding from the non-bank lender Senior Trust Retirement Village Income Generator Limited.

The centres are Ranfurly Residential Care Centre and Nelson Residential Care Centre in Feilding, Eileen Mary Residential Care Centre in Dannevirke and the fourth property to be developed was at 62 Aldwins Road in Christchurch.

The aggregate purchase price was $31.4 million, paid for by a share issue to Thomas Brankin (Brankin Family Trust), debt and a share issue to wholesale investors.

Promisia would release a trading update on Monday, and expected the NZX Regulation to lift its suspension of trading of its shares at that time.